Increase Your Financial IQ Book Review - Part 2 -Protecting Your Money

Once you've gotten discovered to resolve issues and earn some cash, the later factor it is better do is to guard that cash from what Robert Kiyosaki calls "business enterprise predators". Real world predators don't in the to the last degree multiplication look the half. Somemultiplication, they're off-the-wall folk with well-meaning intentions. Their job is to "lawfully" take cash out of your pocket...and your job is to "lawfully" have them take as little as doable.

According to the e-book, there are 7 medium of exchange predators it is better defend your cash from. They are:

  Refer To Maker Money Order

1. Bureaucrats

   who lawfully take cash from you thru "taxes"

• Taxes are your single largest expense
• Know which kinda revenue you are incomes cash from and paying in taxes
• Earned Income - wage, fee, then forth
• Portfolio Income - revenue from paper property aware of pursuits, dividends, then forth
• Passive Income - royalties, rental revenue from real-estate, licensing, then forth
• 
  

  Bankers

  who lawfully take cash from you thru "fees"
  • Banks and bank card corporations cost you with all types of charges, a couple of of them you or your organization won't even concentrate on
  • For each note you've gotten inside the business enterprise institution, the business enterprise institution can lend out twenty {dollars} to your bank card. The business enterprise institution pays you 5 % for one note and makes 20 % on twenty {dollars}. That is how Sir Joseph Banks generate income.
• 
  

  Brokers

  who lawfully take cash from you thru "commissions"
  
• Look for brokers who're college students of their career and put money into what they promote
• For real-estate brokers, ask them what number of properties they're endowed in.
• For inventory brokers, ask them which shares they in person put money into.
• "Good" brokers make you wealthy, "bad" brokers make you poor. Build a relationship with "good" brokers.
• 
  

  Businesses

  who lawfully take cash from you thru "profits"
  
• Buy merchandise that make you wealthy
• Poor folk purchase merchandise that make them poor, paying them for years with a really excessive rate of interest
• 
  

  Brides and Beaus

  who lawfully take cash from you thru "alimony/marital plus split"
  
• Get a observance settlement earlier than you marry
• Think of your exit plan earlier than you enter into the settlement
• 
  

  Brothers-in-law

  who lawfully take cash from you thru "inheritance or business enterprise wishes"
  
• Consult an property provision specialist to plan your exit
• Use authorized autos aware of wills & trusts to guard your wealth from dying predators
• 
  

  Barristers

  who lawfully take cash from you thru "court & legal fees"
  
• Hold property of worth in authorized entities as a substitute of your personal identify
• You should purchase coverage earlier than you want it...not the second you want it.
Rich Money Habits

Review Notes:

• Protecting your cash is like plugging holes. You first have to be conscious what the holes are earlier than you may truly plan on fixing them to cease the money from flowing out.
• Learning to guard your cash is a not by a blame sigh ending course of as the foundations recurrently change. The methods to guard your cash yesterday power not have the power to defend your cash at this time or tomorrow.
• Protecting your cash reduces your bills. The more cash you retain, the more cash you may make the most of for productive endeavors.